Now the dwarfs were anxious to keep on good terms with the gods, who could protect them against the giants; and so, when they heard Loki's request, they readily agreed to make the three things. Accordingly, they set to work upon a pile of golden nuggets, and spun from them a mass of the finest gold thread, so smooth and soft that it looked like the loveliest hair. This they gave to Loki, telling him that directly it touched the head of Sif it would become as a natural growth.

"Now give me something for Odin," said Loki, well pleased.

So the dwarfs set to work again, and presently fashioned the spear called Gungnir, which, however badly it might be aimed, was always sure to go straight to its mark.

Loki gratefully took the spear, and there now only remained the gift for Frey.

The dwarfs thought awhile, and then set to work upon a ship which, when pressed together, would fold up and go into one's pocket, but which, when allowed to expand, would hold all the gods in Asgard and their horses, would sail through air as well as on water, and would always get a favourable wind directly it hoisted canvas.

Loki was immensely pleased with these gifts, and went away, declaring loudly that his dwarf friends were the cleverest smiths in all the world.

Now it so fell out that his words were heard by another dwarf, named Brock, who came and stood in his way and looked with scorn at the ship and the spear and the golden web which he carried in his hands.

"A clumsy lot of things you have there!" he jeered. "Why, my brother Sindri could make gifts that are far more wonderful than those."

"My head against yours that he could not!" said Loki, getting angry.

"Done!" chuckled Brock with a leer, and forthwith they made their way to the underground cave where Sindri was at work in his forge.